Blockbuster again asks shareholders to back board

DALLAS

Blockbuster Inc., highlighting a recommendation from an independent proxy advisory firm, again urged shareholders to elects its preferred choice to the company board.

Blockbuster is engaged in a proxy fight with activist investor Gregory S. Meyer, who wants a seat on the board. Meyer founded a DVD rental kiosk business in 2001 called DVDXpress and later sold it to Redbox operator Coinstar Inc. It has become a major competitor to Blockbuster.

Shareholders are scheduled to vote on board nominees during the June 24 annual meeting. Meyer wants to replace director Gary J. Fernandes, the chairman of a real estate investment company called FLF Investments.

Blockbuster on Wednesday said that advisory firm, Glass, Lewis & Co., suggested stockholders vote for all seven of Blockbuster's 2010 director nominees and the company's other proposals.

Blockbuster said the firm contends Meyer has "largely failed to provide shareholders with a cogent, practicable plan... and, by extension, has failed to establish that his plans are superior to those disclosed and undertaken by the board."